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Investments in Forest Industry Transformation (IFIT) │ Natural Resources Canada (NRCAN)

April 28, 2026

Value

Up to 50% of the total eligible project cost. The maximum IFIT contribution to a project is $10 million.

Description

the Investments in Forest Industry Transformation (IFIT) program facilitates the adoption of transformative technologies and products in the Canadian forest sector by bridging the gap between development and commercialization. The program aims to create a more competitive, resilient, and environmentally sustainable sector with a focus on innovative, low-carbon projects that result in new or diversified revenue streams.

Open Stream:

Capital Investment Project Stream – provides non‑repayable contributions to de-risk innovative, first-in-kind technologies in Canada’s forest sector.

 

Eligible Applicants

To qualify for IFIT funding, applicants must be for-profit companies located in Canada that fall into one of the following two categories:

  • existing producers: Organizations currently manufacturing forest products (such as pulp, paper, solid wood, or engineered wood) at an existing facility
  • new entrants: Organizations entering the forest sector specifically to execute the proposed project

Clusters, joint ventures and consortiums are eligible, provided a for-profit company is designated as the lead applicant.

Stacking provisions

Total government assistance (federal, provincial/territorial and municipal) will not exceed 100% of the total eligible project cost.

 

 

Eligible Expenses

The IFIT program requires that projects fall within one of the targeted innovation categories designed to align with current priorities.

  • Advanced wood-based building solutions: The development of innovative structural and architectural solutions designed to displace carbon-intensive materials like concrete, steel and fossil-based insulation.
  • Biomaterials and biochemicals: The conversion of wood fibre into high-performance, sustainable alternatives to petroleum-based products.
  • Pulp and paper modernization: Projects aimed at transforming the pulp and paper industry through high-value diversification and environmental stewardship.
  • Next-generation biofuels: The conversion of forest residues, low-grade fibre, harvest by-products and mill residuals into fuels via thermochemical or biochemical pathways.
  • Advanced decarbonization: This category is reserved for transformative, emerging technologies that achieve deep emission reductions in forest

Deadline Date

The Investments in Forest Industry Transformation (IFIT) program is currently open for applications as part of its 2026 renewal. The Capital Investment Project Stream has an application deadline of April 27, 2026, at 3:00 PM EST. Please visit the official Natural Resources Canada website for full details and specific guidelines for both Capital Investment and Studies projects.

Contact

Contact Name: IFIT team

E-mail Address: ifit-itif@nrcan-rncan.gc.ca

Website: https://natural-resources.canada.ca/science-and-data/funding-partnerships/opportunities/forest-sector/investments-forest-industry-transformation/13139

Industry:

Energy & Environment, Indigenous, Municipalities, Non-Profit, Software/Technology

Location:

Alberta, British Colombia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Nunavut, NWT, Ontario, PEI, Quebec, Saskatchewan, Yukon

Tags:

ABmunis, Cleantech, Forestry, Innovation

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